XRP's Surge Amidst US Bitcoin Reserve Debate
The cryptocurrency market is buzzing with a heated debate surrounding a potential US national cryptocurrency reserve, and XRP is at the center of the storm. Bitcoin maximalists are accusing Ripple of actively working against a Bitcoin-centric reserve, citing Ripple's lobbying efforts and XRP's recent impressive price performance.
XRP Outperforms Bitcoin
Since November 2024, XRP has seen a remarkable +330% increase in value, significantly outpacing Bitcoin's growth. This performance has fueled speculation and intensified the criticism from Bitcoin proponents.
The Allegations Against Ripple
- Lobbying Efforts: Critics claim Ripple is lobbying against a US Bitcoin reserve, advocating instead for a more diversified reserve that includes XRP.
- Centralized Control: Concerns exist about Ripple's significant control over XRP's supply, contrasting it with Bitcoin's decentralized nature and making it unsuitable for a reserve asset, critics argue.
- Political Donations: Ripple's political donations to Democratic senators have drawn criticism, particularly given previous SEC actions against the company under Democratic leadership.
Jack Mallers of Strike publicly accused Ripple of "undermining American prosperity, freedom, and Bitcoin." These accusations highlight the deep divisions within the crypto community regarding the ideal composition of a national digital asset stockpile.
The US Crypto Reserve Proposal
The idea of a US national cryptocurrency reserve stems from a crypto executive order issued by President Trump. This order aims to establish a national digital asset stockpile and drive digital financial innovation. The proposal's exact composition remains under discussion, leading to the current conflict.
Differing Perspectives
While some argue a Bitcoin-only reserve is crucial for US economic security, others, including Ripple, advocate for a more diverse approach. Peter Schiff, a long-time Bitcoin critic, dismissed the idea of a national Bitcoin reserve, arguing that it's an inflationary measure that would hurt US citizens.
Polymarket currently gives a 21% probability to a US XRP reserve in 2025, compared to 60% for a Bitcoin-centric reserve. However, the significant outperformance of XRP against Bitcoin adds fuel to the ongoing debate.
Note: The XRP/BTC chart shows the pair reaching its 2021 cycle peak, potentially suggesting a reversal or blow-off top.
Source: XRP/USDT, TradingView
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